In the foreign currency market the shekel continued to strengthen against the dollar and euro with a 0.27% fall in the shekel-dollar exchange rate, compared with yesterday's representative rate, to NIS 3.469/$, and a 0.27% fall in the shekel-euro exchange rate to NIS 4.775/€.
Yesterday the the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.478/$, down 0.401% on Friday's rate, and the shekel-euro representative exchange rate at NIS 4.788/€, down 0.61%.
FXCM research department said, "The new low that was set during trading yesterday has little technical validity and we must wait for the renewal of trading in 2014 to estimate more accurately the current shekel-dollar momentum."
"Even so there is no doubt that the negative pressure on the two currencies remains large and there is a risk of breaking significantly lower. The dollar is at high risk worldwide due to the positive sentiment in capital markets in recent weeks and record levels of share indices. If there is indeed a continued weakness of the dollar at the start of 2014, the Bank of Israel must take aggressive action to prevent a collapse. From a technical point of view the shekel-dollar exchange rate is exposed to falling to very dangerous levels such as NIS 3.42/$ and NIS 3.38/$.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2013
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